Beyond Meat — Third Quarter 2026 Earnings Summary

Financial Performance

• Total net revenues were $64.5 million, a decrease of 8.1% year-over-year compared to $70.2 million.
• Gross profit was $12.4 million, representing a gross margin of 19.3%, compared to $5.2 million (7.4% margin) in the prior year period; the prior year included $1.7 million in expenses related to the cessation of operations in China.
• Loss from operations was $93.0 million (operating margin of -144.1%), compared to $98.1 million (-139.7%) in the prior year.
• Operating expenses included $57.1 million in non-cash impairment charges on long-lived assets, $20.8 million in non-cash accelerated rent charges related to the El Segundo Campus Headquarters, $5.5 million in incremental share-based compensation from the 2027 Notes exchange offer, and a $21.8 million credit from a reduction in litigation-related accruals.
• Net loss was $82.8 million, compared to $97.0 million in the prior year period.
• Net loss per share (basic and diluted) was $(4.32), compared to $(37.96) in the prior year, reflecting 19,152,391 weighted average shares outstanding versus 2,555,696 in the prior year.
• Adjusted EBITDA was a loss of $24.6 million (-38.1% of revenue), compared to a loss of $33.5 million (-47.7% of revenue) in the prior year.
• Cash and cash equivalents, including restricted cash, totaled $169.3 million as of September 26, 2026.
• Total outstanding debt carrying value was $313.9 million as of September 26, 2026.
• Net cash used in operating activities for the nine months ended September 26, 2026, was $37.3 million, compared to $101.2 million in the prior year period.
• Capital expenditures for the nine months ended September 26, 2026, were $5.5 million, compared to $9.3 million in the prior year.

Guidance and Future Outlook

• For the fourth quarter of 2026, total net revenues are expected to be approximately $54 million to $59 million.
• Management noted elevated uncertainty and volatility in the operating environment that may impact actual realized results.

Business Segments and Product Lines

• International retail channel net revenues increased 13.3% to $17.9 million, driven by a 17.4% increase in volume, primarily from strong sales in European markets and Canada.
• U.S. retail channel net revenues decreased 13.2% to $24.8 million, driven by a 20.8% decrease in volume due to lower sales in club channels and reduced points of distribution.
• U.S. foodservice channel net revenues decreased 9.7% to $9.5 million, driven by a 12.6% decrease in volume due to reduced points of distribution and weak category demand.
• International foodservice channel net revenues decreased 19.4% to $12.4 million, driven by a 17.5% decrease in volume due to lower sales to certain Quick Service Restaurant (QSR) customers.
• Total volume of products sold decreased 10.9% year-over-year, while total net revenue per pound increased 3.2%.
• The company is pursuing cost reduction actions, including substantially reducing certain long-term lease obligations.

Market and Competitive Landscape

• The company faces weak category demand in the U.S. foodservice and retail channels.
• Revenue per pound increases were driven by higher price realization, lower trade discounts, and changes in product sales mix, partially offset by unfavorable foreign currency exchange rates.
• The company is repositioning as "Beyond The Plant Protein Company" and exploring adjacent product categories.

Risks and Challenges

• Significant non-cash charges included $57.1 million in impairment charges on long-lived assets following triggering events identified during the quarter.
• The company faces risks related to its debt obligations, including the 2027 Notes maturing on March 15, 2027, and the 2030 Notes.
• The company no longer satisfies eligibility requirements for Form S-3 and cannot access its at-the-market offering program.
• Risks include potential additional impairment charges, inventory write-downs, and the need to remediate material weaknesses in internal control over financial reporting.
• The company identified errors in previously issued interim financial statements for 2025 relating to inventory valuation, debt issuance costs, and impairment of long-lived assets, which were corrected retroactively.

Management Commentary and Tone

• President and CEO Ethan Brown stated that results represent "measurable progress," noting revenues were at the high end of guidance, gross margin was the highest in five years, and Adjusted EBITDA loss narrowed.
• Management highlighted the international retail channel registering a third consecutive quarter of growth.
• Brown emphasized the company is taking steps to stabilize U.S. revenues while aggressively driving enterprise-wide cost reduction.

Other Key Points

• On September 23, 2026, the Company exchanged $15.0 million in aggregate principal amount of its 2027 Notes for approximately 1.55 million shares of common stock, leaving $14.5 million in 2027 Notes outstanding.
• The 2027 Notes exchange offer was completed in October 2025, resulting in incremental share-based compensation expense.
• A 1-for-30 reverse stock split and authorized share reduction were effective on August 13, 2026, with all historical data retroactively adjusted.
• Total other income, net, was $10.1 million in the quarter, primarily driven by a $13.3 million non-cash gain from the remeasurement of derivative liability.
• The company reported a reduction in a litigation-related accrual of $21.8 million.
• The company hosts a conference call on November 4, 2026, to discuss results.